Correlation Between Industrial and Guangxi Wuzhou
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By analyzing existing cross correlation between Industrial and Commercial and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Industrial and Guangxi Wuzhou and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Industrial with a short position of Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Guangxi Wuzhou.
Diversification Opportunities for Industrial and Guangxi Wuzhou
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Guangxi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu and Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Industrial and Commercial are associated (or correlated) with Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Industrial i.e., Industrial and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Industrial and Guangxi Wuzhou
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.53 times more return on investment than Guangxi Wuzhou. However, Industrial and Commercial is 1.89 times less risky than Guangxi Wuzhou. It trades about 0.07 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.02 per unit of risk. If you would invest 466.00 in Industrial and Commercial on September 2, 2024 and sell it today you would earn a total of 149.00 from holding Industrial and Commercial or generate 31.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Industrial and Commercial |
| Guangxi Wuzhou Commu |
Industrial and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Guangxi Wuzhou
The main advantage of trading using opposite Industrial and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Guangxi Wuzhou can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Industrial vs. Longjian Road Bridge | Industrial vs. Chongqing Road Bridge | Industrial vs. FSPG Hi Tech Co | Industrial vs. Broadex Technologies Co |
| Guangxi Wuzhou vs. Shanghai Yanpu Metal | Guangxi Wuzhou vs. Guangdong Liantai Environmental | Guangxi Wuzhou vs. Fujian Nanwang Environment | Guangxi Wuzhou vs. Anhui Transport Consulting |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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